Have you saved a little money to take a vacation, but have poor credit and are having trouble getting a credit card? There is a solution – consider a prepaid credit card. Even if you have the cash on hand, planning and taking a vacation may be difficult if you do not have a credit card. Have you thought about how many goods and services require one?
- Rental Cars
- Hotel / Motel Rooms
- Airline / Train Reservation
- Tour Packages
- Any online purchases of travel gear, etc.
You also miss the added convenience and additional services provided:
- The Convenience & Security of Not Carrying Cash
- Fraud and Identity Theft Protection
- Special Product Offers Like Travel Insurance
- Spending Rewards
Does this mean because you have bad credit you can not do any of these things? Not if you get a prepaid card.
How Does It Work?
A prepaid credit card account is opened by depositing money into that account, much in the same way you would make a deposit to open a checking or savings account. Once you have money in your account, you are issued a card that can be used anywhere you would use a regular credit card. You can only spend what you deposit, so there are no costs overdraft or interest fees. It's an easy-to-use and convenient alternative to credit cards and traditional banking, without all of the worry of going into debt or overdrawing your account.
Best of all, even with a poor credit history, you can get approved! There is no credit check, which is an added advantage since too many inquiries by lending companies can adversely affect your credit rating, and you are approved immediately.
So How Does This Rebuild Your Credit?
You may have heard that using credit cards when you already have bad credit is not a good idea. But, using them responsibly can actually increase your credit score, especially with a prepaid credit card, since there is no danger of increasing your debt and no cost interest or overdraft fees. First, make sure that the prepaid card you choose reports your payment information to national credit reporting agencies (not all do). Then, use your card, not only for your vacation, but also for paying recurring bills like utility, phone, etc. on a regular and timely basis. Your payment information will be transmitted to the credit reporting agencies, and you will build a payment history, demonstrating your credit worthiness. When you apply for credit in the future, lenders may use your positive credit file to qualify you and offer you better interest rates. This will not happen overnight, but it is a good place to start!
Start Today – Take That Vacation – AND – Start Building a Better Credit Future!
So, if you're ready for that vacation, and you really need one, but are getting frustrated trying to make the arrangements without a credit card, get your prepaid card now. It's a win-win deal – you get your vacation, and, you start rebuilding your good credit history at the same time!